Aviation Daily

By Adrian Schofield
ASTAR pilots have ratified a deal with the carrier that amends and extends their contract for four years. ASTAR says the deal provides better wages, benefits and job security for pilots, and also positions the carrier for growth.

Benet Wilson
Airport screeners now have machines by U.K.-based ThruVision that use terahertz rays (t-rays) to search for concealed objects. The technology used in ThruVision’s T400 system is completely passive, said spokesman Greg Finn. “We create a terahertz image of the scene from naturally occurring radiation,” he explained. “A common imaging solution we provide is to place a real-time terahertz image alongside a normal CCTV image.”

Staff
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Benet Wilson
Global airport credit quality is expected to remain stable or decline slightly in 2008, reflecting changing world economic conditions, according to a new report from debt watcher Fitch Ratings.

Neelam Mathews
Increased capacity, air traffic control and a stretched infrastructure might have a negative impact on aviation, delegates pointed out at the Annual Indian Airfinance Conference held in New Delhi. “Consolidation in the aviation sector has so far not brought meaningful benefits on balance sheets,” said Center of Asia Pacific Aviation CEO Kapil Kaul. Air India-Indian Airlines, Jet Airways-Air Sahara and Air Deccan-Kingfisher Airlines were three mergers that took place last year.

By Jens Flottau
German regional carrier Cirrus Airlines is relaunching its business model and wants to become a carrier focused on high-yield business traffic. The company is relocating from its current base in Saarbruecken to Munich. Cirrus plans to operate a fleet of 22 Dornier 328s by the end of 2008 and will phase out six de Havilland Dash 8s. The scheduled operation will be complemented by an ad hoc executive charter business operating three Embraer 170s. Two of the aircraft are currently operating under wet-lease for Lufthansa.

Staff
When Alitalia’s board of directors meet on March 15 it will be discussing more than the takeover offer submitted this week by Air France-KLM. Also on the agenda will be Alitalia’s short-term financial needs and potential need for a loan from the Italian government.

Benet Wilson
Western states may get more direct access to Washington National Airport under a bill to relax the 1,250-mile perimeter rule introduced by Sen. John Ensign (R-Nev.), with co-sponsors Barbara Boxer (D-Calif.) and John McCain (R-Ariz.).

Staff
ASTAR Air Cargo promoted Kenneth “Rob” Miller to managing director-employee relations.

By Adrian Schofield
Embraer last week said it set a new company record with 169 deliveries in 2007, and it expects to beat this total in 2008 with 195-200 deliveries, not including Phenom jets. The fourth quarter was particularly strong for Embraer, with the 61 deliveries of all types representing a 65% improvement. Revenues for the quarter increased 77% to $1.9 billion. Operating profit doubled, and net profit increased to $200.9 million, compared with $124.4 million in the same quarter in 2006.

Staff
30 Years Ago March 20, 1978 — Aeroflot executives say the Tu-144 is being used for passenger service within the USSR and the company has “no definite plans” for any New York supersonic operation. 20 Years Ago March 18, 1988 — Sen. George Mitchell (D-Maine) introduced legislation identical to a House bill sponsored by Rep. Sherwood Boehlert (R-N.Y.) to give DOT/FAA authority to review airport fee proposals and determine whether the fees are in the public interest. 10 Years Ago

Staff
Pilots wanting to relocate to India and China will be in high demand inthe next 10 years. Chinese aviation officials believe the country will need 1,900-2,000 more pilots a year for the next 10 years. India is expected to need up to 900 pilots per year. In addition, Airbus has identified a handful of countries that could emerge as thriving aviation markets in the next few years — Brazil, Ukraine, Turkey, Russia, Indonesia and Argentina.

Annette Santiago
The operators of San Diego International airport believe the U.S. Transportation Dept.’s bid to relieve congestion through its new pricing scheme (DAILY, Jan. 15) may have a discriminatory effect on low-cost carriers, and they urge DOT to find “solutions that are fundamentally fair and effective.”

By Adrian Schofield
The Air Transport Association is seizing on a recent government report to highlight its calls for business jet operators to pay more of the cost of the U.S. ATC system.

Staff
Senate lawmakers are following the example of their House colleagues by weighing in on the highly publicized aircraft inspection lapses by Southwest and some FAA employees. Senate aviation subcommittee Chair John Rockefeller (D-W.Va.) plans an oversight hearing in the first week of April focusing on FAA safety programs in general and the Southwest controversy in particular. The House panel will meet April 3.

Staff
Some airline industry observers believe FAA’s forecast of a strong rebound in traffic growth in FY2009 — after a significant slowdown in FY2008 – might be overly optimistic. The Air Transport Association, for example, says FAA’s traffic expectations for FY2009 “may be a bit aggressive” in light of higher fuel prices and signs of a recession. “While some of the actions by government may soften the fiscal 2008 impact, they could push the influence of a slowing economy into fiscal 2009,” says ATA Chief Economist John Heimlich.

Staff
To list an event, send information in calendar format to Ingrid Lee at [email protected] (Bold type indicates new calendar listing.) MARCH 17-19 — SpeedNews 22nd Annual Aviation Industry Suppliers Conference, Beverly Wilshire, Beverly Hills, Calif., 310-595-9405 MARCH 17-20 — National Air Transportation Association, 2008 Annual Convention/FBO Leadership Conference, Dallas, Texas, 703-845-9000, e-mail: [email protected]

Jennifer Michels
Saying they have lost all patience with the US Airways/America West merger, the America West portion of the Air Line Pilots Association at US Airways has requested separate contract negotiations with the airline. US Airways, however, is declining the request to negotiate separately. A spokeswoman told The DAILY, “We believe it is in the best interest of US Airways, as well as our employees, to focus on joint negotiations for a single labor agreement. We are ready to meet with both of our pilot groups to jointly negotiate one single contract.”

Staff
FAA believes the number of commercial aircraft in the U.S. fleet will grow to 12,202 by 2025, increasing at an average rate of 2.5% from the 2007 level of 7,816. The fleet will see a net gain of 92 aircraft this year and 80 in 2009 — with almost all the growth generated by low-cost carriers.

Staff
International Brotherhood of Teamsters General President James Hoffa says he has had several “candid” conversations with Sen. Barack Obama, and that he is the right presidential candidate to protect union members. “He will join us in our commitment to rebuild our nation’s transportation infrastructure and will make appointments that make sense — people who will protect workers.” Hoffa says Obama understands that America needs fair trade policies.

Keating Muething and Klekamp PLL
On March 28, 2008, at 11:00 a.m. at the offices of Keating Muething and Klekamp PLL, One East Fourth Street, Suite 1400, Cincinnati, Ohio 45202, National City Commercial Capital Company, LLC (“National City”) shall sell at public auction in a single lot or in parcels one Fairchild-Dornier Model 328-300 Aircraft and two Pratt and Whitney Model 306C Aircraft Engines described below, subject to terms, conditions and restrictions to be provided upon request.

By Adrian Schofield
Qantas last week announced expansion on its main transpacific routes to the U.S., with one of the changes giving Brisbane daily service to Los Angeles. Two new weekly flights on the Brisbane route will be added March 27 and April 1, and an additional weekly Sydney-LAX flight on March 30. Qantas is also introducing another Honolulu-Sydney flight per week.

Keating Muething and Klekamp PLL
On March 28, 2008, at 10:00 a.m. at the offices of Keating Muething and Klekamp PLL, One East Fourth Street, Suite 1400, Cincinnati, Ohio 45202, National City Commercial Capital Company, LLC (“National City”) shall sell at public auction in a single lot or in parcels one Boeing Model 737-200 Aircraft and two Pratt and Whitney model JT8D-7 Aircraft Engines described below, subject to terms, conditions and restrictions to be provided upon request.

Staff
The trend of healthy unit revenue growth many U.S. majors are seeing is likely to “stall across the industry in the face of softer demand,” probably first on domestic routes and then in international markets, says Standard & Poor’s analyst Philp Baggaley. He notes that airline liquidity, “while adequate in the near term, could come under pressure in a prolonged or worse-than-expected deterioration in airline industry conditions.”